When you send an invoice through Factofly, you must include VAT regardless of whether your total turnover is above or below 50,000 DKK. This applies to all invoices sent to Danish companies or individuals. However, if you send an invoice to a foreign customer, the reverse charge rules apply, and you do not need to include VAT on the invoice.

Why must VAT be applied? As you will be associated as a project employee at Factofly, the invoice will be sent by Factofly on behalf of you. It is thus the VAT registration related to Factofly which will apply.

You have the option to exclude VAT on invoices issued to foreign customers.

If you invoice outside of Factofly in Denmark, you can sell up to 50,000 DKK without having to charge VAT. If you expect your turnover to exceed 50,000 DKK within a 12-month period, you will need to register your business for VAT. It is your total turnover, not your profit, that determines when you need to register for VAT. It is also possible to register your business for VAT even if your turnover is less than 50,000 DKK. If you delay registration, you risk losing the ability to deduct VAT on your investments.

You can also choose to register your business for VAT at the time of establishment if you know that your turnover will exceed 50,000 DKK.